In this article, we will look at the 10 Best Small-Cap Value Stocks to Buy.
The Russell 2000 Index has risen more than 21% over the past 6 months. On November 26, Chris Retzler, portfolio manager of the Needham Small Cap Growth Fund, appeared on a CNBC television interview to discuss the performance of the sector. Retzler noted that the small-cap stock rally has a strong setup for continued momentum moving forward. He elaborated that the market has started to broaden, and this expansion sets the stage for small-cap outperformance. Additionally, the Federal Reserve’s cuts are becoming more certain, which will help direct funds to undervalued areas of the market.
Retzler acknowledged small caps’ higher risk profile compared to large caps. This was driven by elevated interest rates over the past four to five years that funneled money into mega caps, thereby enabling them to outperform the market. Now, with the Fed easing interest rates, Retzler expects liquidity to flow into the small-cap stocks as large-cap stocks have already been in the spotlight for a long time, and investors are now looking outside. He added that this sentiment was visible in the recent slowdown in the technology sector, which suggests that the large-cap stocks are facing capacity challenges. After speaking with over 40 companies, Retzler concluded this is the most favorable entry point for small caps since 2019.
With that, let’s take a look at the 10 Best Small Cap Value Stocks to Buy.
Our Methodology
To curate the list of 10 Best Small Cap Value Stocks to Buy, we used the Finviz stock screener, CNN, and Insider Monkey’s Q3 2025 hedge fund database. Using the screener, we aggregated a list of small-cap value stocks (market capitalization between $300 million and $2 billion). After sorting the list by market capitalization, we looked for stocks trading under the FWD P/E of 20, and for which analysts expect at least 10% upside. Next, we cross-checked the upside potential from CNN and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s database. Please note that the data was recorded on December 11, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Small-Cap Value Stocks to Buy
10. Genesis Energy, L.P. (NYSE:GEL)
Market Capitalization: 1.98 billion
Forward P/E: 13.02
Analyst Upside Potential: 17.57%
Number of Hedge Fund Holders: 5
Genesis Energy, L.P. (NYSE:GEL) is one of the Best Small Cap Value Stocks to Buy. Genesis Energy, L.P. (NYSE:GEL) is up more than 52% year-to-date. On December 1, Elvira Scotto from RBC Capital reiterated a Buy rating on the stock with a $20 price target.
The analyst noted that the bullish sentiment stems from the company’s fiscal Q3 2025 results and impressive year-to-date performance. Scotto highlighted that despite the company non profitability over the past 12-months, it remains well-positioned to benefit from an increase in offshore volumes and increased cash flow. The analyst also highlighted that Genesis Energy, L.P. (NYSE:GEL) has an impressive available pipeline that has the potential to grow without significant capital expenditure.
During the fiscal Q3 2025, Genesis Energy, L.P. (NYSE:GEL) reported net income of $9.2 million, marking a significant increase from a net loss of $17.2 million during the same quarter last year. Management noted that the quarterly performance was largely in line with their expectations. They attributed financial performance to its offshore pipeline transportation segment, which benefited from no weather-related disruptions and other favorable seasonal factors.
Genesis Energy, L.P. (NYSE:GEL) operates as a diversified midstream energy master limited partnership, focusing on transportation, storage, and processing services for crude oil, natural gas, and related products primarily in the Gulf Coast region.
9. SmartStop Self Storage REIT Inc. (NYSE:SMA)
Market Capitalization: $1.93 billion
Forward P/E: 15.00
Analyst Upside Potential: 19.19%
Number of Hedge Fund Holders: 17
SmartStop Self Storage REIT Inc. (NYSE:SMA) is one of the Best Small Cap Value Stocks to Buy. On December 10, Simon Yarmak from Stifel Nicolaus reiterated a Buy rating on SmartStop Self Storage REIT Inc. (NYSE:SMA) with a price target of $40. Earlier on November 25, Eric Luebchow from Wells Fargo also reiterated a Buy rating with a $41 price target.
Simon Yarmak of Stifel noted that the company has performed well since its IPO, despite a 9.3% year-to-date decline in the broader storage solutions sector. The analyst noted that investor sentiment is shifting towards the storage sector mainly due to sluggish home sale velocity throughout 2025. Moreover, Yarmak highlighted that while the supply has remained elevated in the property sector, he expects the conditions to improve in the next 12-months.
That said, SmartStop Self Storage REIT Inc. (NYSE:SMA) recently grew its presence in the Orlando MSA. On November 26, the company announced the acquisition of a self-storage facility located in Winter Garden, Florida. Management noted that the facility consists of approximately 72,100 net rentable square feet across seven single-story buildings. This can offer around 515 storage units.
SmartStop Self Storage REIT Inc. (NYSE:SMA) is a self-managed real estate investment trust (REIT) focused on growing its self-storage brand.
8. Sylvamo Corp. (NYSE:SLVM)
Market Capitalization: $1.90 billion
Forward P/E: 14.06
Analyst Upside Potential: 17.46%
Number of Hedge Fund Holders: 20
Sylvamo Corp. (NYSE:SLVM) is one of the Best Small Cap Value Stocks to Buy. Bank of America Securities maintains a positive stance on Sylvamo Corp. (NYSE:SLVM) despite a 36.68% year-to-date decline. Recently, on December 1, George Staphos from BofA reiterated a Buy rating on the stock with a $59 price target.
The firm had updated the stock to Buy earlier on November 21, along with two other names from the packaging and paper sector. The analyst sees significant catalysts for the company, including improved operating rates in North America driven by the closing of Riverdale and Chillicothe facilities. Staphos anticipates that the North American operation rates can reach 90% in 2026. Moreover, he also highlighted that Sylvamo Corp. (NYSE:SLVM) will also benefit from a potential $40/ton price increase for uncoated free sheet paper, expected in the second half of 2026.
Sylvamo Corp. (NYSE:SLVM) faced challenges in the fiscal third quarter of 2025, announced on November 7. It reported a 12.33% year-over-year decrease in revenue to $846 million, which surpassed expectations by $10.34 million. However, the EPS of $1.44 missed the consensus by $0.03. Management noted that the price and mix decreased by $14 million during the quarter, primarily due to the prices of paper and pulp in Europe.
Looking ahead, the company expects the challenges in Europe to persist during the fourth quarter. However, these challenges are expected to be offset by increasing volume in Latin America and North America.
Sylvamo Corporation (NYSE:SLVM), headquartered in Memphis and founded in 1898, produces and sells uncoated paper and pulp in Europe, Latin America, and North America.
7. Central Garden & Pet Co. (NASDAQ:CENT)
Market Capitalization: $1.90 billion
Forward P/E: 12.11
Analyst Upside Potential: 35.41%
Number of Hedge Fund Holders: 23
Central Garden & Pet Co. (NASDAQ:CENT) is one of the Best Small Cap Value Stocks to Buy. Central Garden & Pet Co. (NASDAQ:CENT) is up more than 8% since its fiscal Q4 2025 earnings release on November 24. Recently, on December 2, Bill Chappell from Truist Financial reiterated a Hold rating on the stock without disclosing any price target. However, earlier on November 25, Bradley Thomas from KeyBanc reiterated a Buy rating on the stock with a $50 price target.
Thomas from KeyBanc noted the company’s Q4 earnings to be one of the key reasons behind his bullish sentiment. He noted that Central Garden & Pet Co. (NASDAQ:CENT) is performing well in a tough environment and has become structurally profitable due to its strategic exit from low-margin products and customers.
The company grew its quarterly revenue by 1.30% year-over-year to $678.18 million, surpassing estimates by $20.32 million. Moreover, the EPS of negative $0.09 also topped the consensus by $0.11. Thomas noted that the company’s performance was driven by a strong performance in the Garden segment, which topped the estimates by around 11%. On the other hand, the Pet segment also remained in line with the general consensus.
Central Garden & Pet Company (NASDAQ:CENT) produces and distributes branded and private label products for the garden, lawn, and pet supplies markets. The company’s operations are divided into the Pet and Garden segments.
6. HNI Corp. (NYSE:HNI)
Market Capitalization: $1.87 billion
Forward P/E: 11.89
Analyst Upside Potential: 58.67%
Number of Hedge Fund Holders: 25
HNI Corp. (NYSE:HNI) is one of the Best Small Cap Value Stocks to Buy. On December 10, HNI Corp. (NYSE:HNI) announced the completion of its Steelcase Inc. (NYSE:SCS) acquisition. Management noted that the merger of the two companies will result in a stronger united company to meet the challenging and growing need for the workplace as the work-from-office trend is gaining traction.
Management also noted that while this strategic acquisition accelerates the ability of HNI Corp. (NYSE:HNI) to invest in long-term operations, the combined business is expected to generate annual pro forma revenue of $5.8 billion.
That said, the company, during its fiscal Q3 2025 results, grew its revenue by 1.73% year-over-year to $683.8 million. The revenue fell short of expectations by $7.72 million. However, the EPS of $1.10 topped the consensus by $0.03. Management noted that productivity and strong control over expenses drove the results for the quarter. Moreover, HNI Corp. (NYSE:HNI) also highlighted that the demand for workplace furniture improved during the quarter, reflecting a 2% increase year-over-year in orders.
The company expects fourth quarter net sales in Workplace Furnishings to increase at a high single-digit rate year-over-year, along with Residential Building Products net sales expected to increase at a high-single digit rate.
HNI Corporation (NYSE:HNI) designs, manufactures, and sells office furniture and residential building products in the United States and Canada.
5. United Natural Foods Inc. (NYSE:UNFI)
Market Capitalization: 1.91 billion
Forward P/E: 14.92
Analyst Upside Potential: 27.31%
Number of Hedge Fund Holders: 25
United Natural Foods Inc. (NYSE:UNFI) is one of the Best Small Cap Value Stocks to Buy. On December 11, Mark Carden from UBS raised the firm’s price target on the stock from $29 to $42, while maintaining a Hold rating on the stock. On the same day, Jefferies reiterated a Hold rating on United Natural Foods Inc. (NYSE:UNFI) with a $40 price target.
The ratings follow the company’s 2025 investor day held on December 10, where management highlighted its long-term strategic and financial targets. Management disclosed its value-creating framework for fiscal 2025 to fiscal 2028. They expect growth in net sales by low-single digits average annual growth rate to reach around $33 billion by 2028. The adjusted EBITDA is anticipated to reach $800 million by 2028, reflecting a low double-digit annual growth rate. Lastly, the company expects to generate $300 million in free cash flow annually from 2026 to 2028.
Analysts from Jefferies like the strategic targets and initiatives being taken to achieve them. The firm believes that additional opportunities will emerge as the company executes its strategy. Overall, analysts’ 12 month average price target reflects more than 27% upside from the current level.
United Natural Foods Inc. (NYSE:UNFI) is a major wholesale distributor of natural, organic, specialty, and conventional grocery and non-food products to retailers across the U.S. and Canada.
4. Skyward Specialty Insurance Group Inc. (NASDAQ:SKWD)
Market Capitalization: $1.90 billion
Forward P/E: 12.97
Analyst Upside Potential: 34.79%
Number of Hedge Fund Holders: 26
Skyward Specialty Insurance Group Inc. (NASDAQ:SKWD) is one of the Best Small Cap Value Stocks to Buy. On December 9, Adam Klauber from William Blair reiterated a Buy rating on the stock without disclosing any price targets. Earlier on December 5, Meyer Shields from KBW raised the firm’s price target on Skyward Specialty Insurance Group Inc. (NASDAQ:SKWD) from $64 to $66, while maintaining a Buy rating on the stock.
The improved Wall Street sentiment follows the company’s announcement regarding gaining regulatory and shareholder approvals for its acquisition of Apollo Group Holdings Limited. The announcement was released on December 3, and the stock has gained more than 5% since the release.
In addition to announcing the approval of the acquisition, management also laid out its guidance for 2026. Skyward Specialty Insurance Group Inc. (NASDAQ:SKWD) expects full-year gross written premiums between $2.65 billion and $2.8 billion, net investment income between $115 million and $120 million, and commission and fee income between $5 million and $8 million.
Analyst Adam Klauber of William Blair noted that the primary reason behind improved investor sentiment is the adjusted EPS guidance of $4.80 to $5.00 per share, which tops Wall Street estimates by 8%.
Skyward Specialty Insurance Group Inc. (NASDAQ:SKWD) is a specialty insurance company that provides commercial property and casualty solutions and products on an admitted and non-admitted basis, predominantly in the US.
3. Marriott Vacations Worldwide Corp. (NYSE:VAC)
Market Capitalization: $1.84 billion
Forward P/E: 8.37
Analyst Upside Potential: 12.56%
Number of Hedge Fund Holders: 33
Marriott Vacations Worldwide Corp. (NYSE:VAC) is one of the Best Small Cap Value Stocks to Buy. Wall Street maintains a positive outlook on Marriott Vacations Worldwide Corp. (NYSE:VAC) despite a 13% loss in share price since fiscal Q3 2025, announced on November 4.
Recently, on December 5, Simon Yarmak from Stifel Nicolaus reiterated a Buy rating on the stock but lowered the firm’s price target from $83 to $70. On the same day, Brandt Montour from Barclays reiterated a Buy rating on the stock with a price target of $64.
Marriott Vacations Worldwide Corp. (NYSE:VAC) reported a 3.22% year-over-year decline in revenue to $1.26 billion, which fell short of expectations by $49.78 million. However, the EPS of $1.69 topped the consensus by $0.09. Management attributed the decline in sales to lower tours and VPG. Moreover, the Vacation Ownership adjusted EBITDA was also down 16% year-over-year, mainly due to lower development and rental profit.
Management expressed disappointment at the subpar results and assured that they are taking steps to return to growth. They highlighted strategic initiatives, including realignment of sales and marketing to incentivise productivity. Moreover, the company also plans to reduce third-party commercial rental activity to achieve higher owner arrivals.
As a result of muted performance during the quarter, Marriott Vacations Worldwide Corp. (NYSE:VAC) also lowered its full-year guidance. The company now expects net sales in the range of $1.760 billion to $1.780 billion, down from the previous range of $1.740 billion to $1.830 billion. The adjusted EBITDA is also expected to be lower at $740 million to $755 million, down from the previous range of $750 million to $780 million.
Marriott Vacations Worldwide Corporation (NYSE:VAC) is a global vacation company involved in vacation ownership, rental, resort, and property management, and other related products, services, and businesses. Its operations are divided into the Vacation Ownership and Exchange & Third-Party Management segments.
2. United Parks & Resorts Inc. (NYSE:PRKS)
Market Capitalization: $1.93 billion
Forward P/E: 9.93
Analyst Upside Potential: 25.66%
Number of Hedge Fund Holders: 37
United Parks & Resorts Inc. (NYSE:PRKS) is one of the Best Small Cap Value Stocks to Buy. United Parks & Resorts Inc. (NYSE:PRKS) has declined more than 19.5% since the release of its fiscal Q3 2025 results on November 6. However, Wall Street maintains a positive outlook with analysts’ 12-month price target reflecting 25.6% upside from the current level. Recently, on December 4, Truist Financial maintained a Buy rating on the stock, while lowering the price target from $61 to $47.
The firm noted that the reduced price target reflects their updated price model for the industry following the Q3 earnings release. During fiscal Q3, United Parks & Resorts Inc. (NYSE:PRKS) reported a 6.24% year-over-year decrease in revenue to $511.85 million, which fell short of the expectations by $26.4 million. The EPS of $1.61 also fell short of the consensus by $0.65.
Management attributed muted quarterly performance to unfavorable calendar shifts, poor weather during holiday seasons, and a decline in international visitation. All of these factors led to a decrease of 252 thousand guests compared to the first nine months of fiscal 2024.
On the bright side, United Parks & Resorts Inc. (NYSE:PRKS) remains optimistic in its forward booking revenue trend into 2026, supported by its Discovery Cove property and our group business, both of which grew over 20% during the quarter.
That said, Voss Capital recently called United Parks & Resorts Inc. (NYSE:PRKS) a “deep value stock” in its third quarter 2025 investor letter. Here’s what the fund said:
“United Parks & Resorts Inc. (NYSE:PRKS) is a deep value stock rightfully doing time in the “penalty box.” Holding the stock has cost us dearly recently with a quick ~45% drop post Q3 earnings. While attendance growth was resilient and positive in Q2 in the face of Universal Studio’s Epic Universe opening, the market yawned and looked past that. Fast forward to Q3 and -3.4% attendance growth and -6.3% Admissions Per Cap (ticket prices) satiated the bear case.
The competitive environment has intensified significantly. With Disney aggressively discounting in Orlando to counter Universal’s newly opened Epic Universe, and Six Flags pressuring some of the regional markets, PRKS has been pressured to lower prices to protect volume. Negative operating leverage is biting—revenue is down 3.9% YTD while Adjusted EBITDA has fallen 11.8%…” (Click here to read the full text)”
United Parks & Resorts Inc. (NYSE:PRKS) owns and operates theme parks. The company’s portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue.
1. The Chemours Company (NYSE:CC)
Market Capitalization: $1.86 billion
Forward P/E: 13.46
Analyst Upside Potential: 22.51%
Number of Hedge Fund Holders: 42
The Chemours Company (NYSE:CC) is one of the Best Small Cap Value Stocks to Buy. The Chemours Company (NYSE:CC) is up more than 12% since its fiscal Q3 2025 results, announced on November 6. The increase in share price comes despite the subpar earnings. Wall Street maintains a mixed outlook.
On December 3, Jeffrey Zekauskas from J.P. Morgan reiterated a Hold rating on the stock and lowered the price target from $15 to $13. Earlier on November 28, Hassan Ahmed from Alembic Global had also lowered the price target from $20 to $19, but maintained a Buy rating on the stock.
During the fiscal Q3 2025, The Chemours Company (NYSE:CC) reported a 0.40% year-over-year decrease in revenue to $1.50 billion, which came in slightly short of the expectations by $2.98 million. The EPS of $0.20 was also below the analysts’ consensus by $0.04. Management attributed nearly flat revenue to a 36% decrease in net sales of Freon Refrigerants and a 16% decrease in net sales of Foam, Propellants & Other. However, this negative performance was offset by an 80% year-over-year increase in the net sales of Opteon™ Refrigerants, which reached $560 million.
Analysts at Truist Financial noted that the quarterly results reflected demand challenges from the company’s Titanium Technologies and industrial markets within Advanced Performance Materials. However, despite the weakness, the analysts remain confident in management’s efforts to right-size production and preserve cash flow under tough market conditions.
The Chemours Company (NYSE:CC) provides performance chemicals, delivering solutions that include a range of chemical and industrial products for markets, such as plastics, semiconductors and consumer electronics, coatings, transportation, refrigeration and air conditioning, and general industrial.
While we acknowledge the potential of CC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CC and that has 100x upside potential, check out our report about this cheapest AI stock.
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